How are you all? Hope everyone is doing well, Today we will try to know about some of the disadvantages of live decentralized exchange (DEX) exchanges, Decentralized exchange means, various SWAPs where no account has to be created, and no KYC has to be completed, meaning there is no third party control here, this means decentralized exchange, So the biggest advantage of these exchanges is, there is no hassle of creating any account and no hassle of doing KYC, meaning you can complete the transaction here by keeping your personal information secret, So today we will try to know about some of the disadvantages of these exchanges, So if everything in the world has its good side, it also has its bad side,1. Security risk
The main problem of decentralized exchanges is, since there is no third party control or security, various hackers or unscrupulous people list scam coins,
As a result, users of these coins Fall into a trap and lose their funds,
Since it is decentralized, if you accidentally trade a coin, you cannot get it back,
2. Low Liquidity
Liquidity is the main issue in decentralized exchanges, if liquidity starts to increase, then the price of the coin also starts to increase,
Sometimes the liquidity of the coin may be low,
Then it can cause slippage while trading tokens or coins, due to which traders cannot trade coins above a certain value,
For example, if the liquidity of a coin is very low, if the coins are sold, the price of the coins drops drastically,
3. Transaction Fee and Gas Free
Usually when we exchange a coin on CEX, a maximum fee of 10 cents is charged for every 100 dollars,
But when we exchange a DEX, the transaction fee and gas fee are high, for example, if an Ethereum coin can be exchanged, a huge amount of gas fee is charged, along with the transaction fee. Yes,
4. Lack of customer support
Usually decentralized exchanges do not have any kind of customer support or help center, as a result, if users encounter any kind of problem, even if they want to, they do not get any kind of customer support to solve that problem, and then they have to solve those problems themselves,
5. Fraudulent DEX
Decentralized exchanges can be easily defrauded, such as various fraudulent exchanges coming to the market, and the native coins of those exchanges are launched, and it is said that this native coin can only be traded on their DEX, users fall into the trap of fraudsters,
and when they connect their DEX wallet and go to complete the trading, all the funds are stolen from their wallet, because they have connected the wallet,
and this is very risky,So before using Dex, use verified or trusted DEX, avoid using any new or unknown DEX,
Also, there is a huge problem for beginners, as there is no trading guide here,
Sometimes beginners make mistakes and lose funds,
So I hope everyone understands, I am ending here today, everyone will be fine,
27.254 SRY